What is Warren Buffett's biggest investing mistake to date? We no longer need to guess at the answer. In an interview that aired yesterday on CNBC, the CEO of Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) said "the dumbest stock" he ever bought was ... Berkshire Hathaway. On the scale of mistakes, this was a beaut – Buffett estimates the opportunity cost of the investment at roughly $200 billion.
A $200 billion blunder for want of an eighth of a dollar. Here's the background: In 1964, Buffett was ready to tender shares he had accumulated in a small textile company -- Berkshire Hathaway -- back to the company. He met with the CEO and they agreed a price of $11.50 a share. Back in Omaha, Buffett received the official tender offer... at a price of $11 3/8! In Buffett's words, "He chiseled me for an eighth." Furious, Buffett refused to tender his shares. In a ruthless and vindictive response, Buffett instead accumulated more shares, eventually taking control of the company -- and firing the CEO.
Source: Motley Fool
Related Articles:
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
The most dependable dividend stocks typically have a long track record of sustaining payouts through different market cycles. Companies with...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.